Short title, extent and commencement
Chapter I: Preliminary1. Short title, extent and commencement.- 1. This Act may be called the National Bank for Agriculture and Rural Development Act, ...
2. Definitions.- In this Act, unless the context otherwise requires,-- a. "Agriculture" includes horticulture, animal husbandry, forestry, dairy and poul...
|Chapter II||Establishment of the National Bank for Agriculture and Rural Development and Capital Thereof|
Establishment and incorporation of National Bank for Agriculture and Rural Development
Chapter II: Establishment of the National Bank for Agriculture and Rural Development and Capital Thereof3. Establishment and incorporation of National Bank f...
4. Capital.- 1. The capital of the National Bank shall be one hundred crores of rupees:Provided that the Central Government may, in consultation with the...
|Chapter III||Management of the National Bank|
Chapter III: Management of the National Bank5. Management.- 1. The general superintendence, direction and management of the affairs and business of the ...
Board of Directors
6. Board of Directors.- 1. The Board of Directors of the National Bank shall consist of the following, namely:-- a. a Chairman; b. two direct...
Term of office of Chairman and other directors, retirement and payment of fees
1. The Chairman shall hold office for such term not exceeding five years and shall receive such salary and allowances as the Central Government may, at ...
Term of office of Managing Director and whole-time directors, conditions of service, etc.
8. Term of office of Managing Director and whole-time directors, conditions of service, etc.- 1. The Managing Director and any whole- time director appoi...
1. No person shall be a director who—a. is of unsound mind and stands so declared by a competent court; or b. is or has been convicted of any of...
Vacation and resignation of office by directors
10. Vacation and resignation of office by directors.- 1. If a director—a. becomes subject to any of the disqualifications mentioned in section 9; o...
Casual vacancy in the office of Managing Director
11. Casual vacancy in the office of Managing Director.- If the Managing Director is by infirmity or otherwise rendered incapable of carrying out his duties o...
Meetings of Board
12. Meetings of Board.- 1. The Board shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of busin...
Committees of National Bank
1. The Board may constitute an Executive Committee consisting of such number of directors as may be prescribed. 2. The Executive Committee shall d...
1. The Board may constitute an Advisory Council consisting of such number of directors and such other persons who, in the opinion of the Board, have spec...
Member of Board or Committee thereof not to participate in meetings in certain cases
A director of the Board or a member of a Committee, who has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting ...
|Chapter IV||Transfer of Business to the National Bank|
Transfer of Assets and Liabilities of Agricultural Refinance and Development Corporation
Chapter IV: Transfer of Business to the National Bank16. Transfer of assets and liabilities of Agricultural Refinance and Development Corporation.- 1. On...
Dissolution of the Corporation and repeal of Act 10 of 1963
17. Dissolution of the Corporation and repeal of Act 10 of 1963.- On the date appointed under sub-section (1) of section 16,-- a. the Corporation shall ...
Transfer of business from Reserve Bank
18. Transfer of business from Reserve Bank.- 1. On such date as the Central Government may, in consultation with the Reserve Bank, by notification, appo...
|Chapter V||Borrowings by the National Bank|
Borrowings by the National Bank
Chapter V: Borrowings by the National Bank19. Borrowings by the National Bank.-The National Bank may, for the purpose of carrying out its functions under thi...
Borrowings in foreign currency
1. Notwithstanding anything contained in the Foreign Exchange Management Act, 1999, or in any other law for the time being in force, relating to foreign...
|Chapter VI||Credit Functions of the National Bank|
Production and marketing credit
Chapter VI: Credit Functions of the National Bank21. Production and marketing credit.- 1. The National Bank may provide by way of refinance, loans and a...
Conversion loan for production credit
Where the National Bank is satisfied that owing to drought, famine or other natural calamities, military operations or enemy action, any State co-operative b...
Rescheduling of loans to artisans, small-scale industries, etc.
Where the National Bank is satisfied that owing to unforeseen circumstances the rescheduling of any loans and advances made to artisans, small-scale industri...
Investment credit-medium term
24. Investment credit-medium term.- The National Bank shall provide such financial assistance as it may consider necessary by way of making to State co-opera...
Other investment credit
25. Other investment credit.- 1. The National Bank may provide such financial assistance as it may consider necessary for promoting agriculture and rura...
Purchase and sale of shares
26. Purchase and sale of shares.-The National Bank may subscribe to, or purchase or sell stocks, shares, bonds or debentures of, or invest in the securities ...
Loans to State Governments for share capital contributions
The National Bank may make loans and advance to State Governments, repayable on the expiry of fixed periods not exceeding twenty years from the date of making...
Loans to State Government, undertakings etc.
The National Bank may make loans and advances to any State Government or a corporation owned or controlled by the State Government or to any other person or c...
Security for credit
1. No accommodation shall be granted by the National Bank under clause (a) or clause (c) of sub-section (1) of section 25 or section 30 or section 32 to ...
Amounts and securities to be held in trust
1. Any sums received by a borrowing institution in repayment or realisation of loans and advances refinanced either wholly or partly by the National Bank...
30. Direct loans.-The National Bank may, in exceptional circumstances to be recorded in writing by the Board, by itself or in association with other financial...
30A. Bills rediscounting.- The National Bank may rediscount bills of exchange and promissory notes made, drawn, accepted or endorsed by any company or body c...
31. Commission.- The National Bank may receive, for the rendering of any of the services mentioned in this Chapter or Chapter VII, such commission or other co...
Issue of guarantees
32. Issue of guarantees.- The National Bank may guarantee, subject to such directions as may be issued by the Board, from time to time, deferred payments in ...
Power to impose conditions for accommodation
33. Power to impose conditions for accommodation.- In entering into any transaction under this Act with a borrower institution, the National Bank may impose ...
Power to call for repayment before agreed period
34. Power to call for repayment before agreed period.- Notwithstanding anything to the contrary contained in any agreement or arrangement, the National Bank m...
National Bank to have access to records
35. National Bank to have access to records.- 1. The National Bank shall have free access to all such records of a borrower seeking to avail of any cred...
Validity of loan or advance not to be questioned
Notwithstanding anything to the contrary contained in any other law for the time being in force, the validity of any loan or advance granted by the National B...
National Bank not to grant loans or advances against its own bonds or debentures
37. National Bank not to grant loans or advances against its own bonds or debentures.- The National Bank shall not grant any loan or advance on the security o...
1. The National Bank shall not make any loans or advances under section 30 or make any grants under this Act to any person or body of persons of which a...
|Chapter VII||Other Functions of the National Bank|
Other functions of National Bank
Chapter VII: Other Functions of the National Bank38. Other functions of National Bank.- The National Bank-- i. shall co-ordinate its operation...
Promotion of subsidiaries
38A. Promotion of subsidiaries.- The National Bank may, in consultation with the Reserve Bank, promote, form or manage or associate itself in promotion, form...
Securitisation of debt
38B. Securitisation of debt.- Notwithstanding anything contained in this Act, the National Bank may -a. create one or more trusts and transfer loans and...
Exemption from compulsory registration
Notwithstanding anything contained in sub-section (1) of section 17 of the Registration Act, 1908 ,-a. any instrument in the form of debt obligations or...
39. Incidental powers.- The National Bank may also do all such things as may be necessary or incidental to or consequential upon the exercise of its powers, ...
Deposits and investments
40. Deposits and investments.- 1. The National Bank may invest its funds in promissory notes, stocks or securities of the Central Government or keep the...
The National Bank may, for the purpose of the efficient discharge of its functions under this Act, collect from or furnish to the Central Government, the Rese...
|Chapter VIII||Funds, Accounts and Audit|
National Rural Credit (Long Term Operations) Fund
Chapter VIII: Funds, Accounts and Audit42. National Rural Credit (Long Term Operations) Fund.- 1. The National Bank shall establish and maintain a Fund ...
National Rural Credit (Stabilisation) Fund
43. National Rural Credit (Stabilisation) Fund.- 1. The National Bank shall establish and maintain a Fund to be known as the National Rural Credit (Stab...
Research and Development Fund
44. Research and Development Fund.- 1. The National Bank shall establish and maintain a Fund to be known as the Research and Development Fund, to which ...
Reserve Fund and other Funds
45. Reserve Fund and other Funds.- The National Bank shall establish a Reserve Fund and other Funds as the Board may consider necessary by transferring such ...
Preparation of balance-sheet, etc., of National Bank
46. Preparation of balance-sheet, etc., of National Bank.-1. The balance-sheet and accounts of the National Bank shall be prepared and maintained in suc...
Disposal of surplus
47. Disposal of surplus.- After making provision for bad and doubtful debts, depreciation of assets and all other matters for which provision is necessary or...
1. The accounts of the National Bank shall be audited by auditors duly qualified to act as auditors under sub-section (1) of section 226 of the Companies...
The National Bank shall furnish, from time to time, to the Central Government and to the Reserve Bank, such returns as the Central Government or the Reserve ...
Staff of National Bank
Chapter IX: Staff50. Staff of National Bank.- 1. The National Bank may appoint such number of officers and other employees as it considers necessary or ...
Obligation as to fidelity and secrecy
Chapter X: Miscellaneous51. Obligation as to fidelity and secrecy.- 1. The National Bank shall not, except as otherwise required by this Act or any othe...
Defects in appointment not to invalidate acts, etc.
52. Defects in appointment not to invalidate acts, etc.- 1. No act or proceeding of the Board or of any committee of the National Bank shall be question...
Agreement with National Bank on appointment of directors to prevail
1. Where any agreement entered into by the National Bank with a company or a body corporate while granting loans and advances, provides for the appointme...
Protection of action taken under the Act
No suit or other legal proceeding shall lie against the National Bank or any director or any officer or other employee of the National Bank or any other perso...
Indemnity of directors
54. Indemnity of directors.- 1. Every director shall be indemnified by the National Bank against all losses and expenses incurred by him in, or in relat...
Exemption from income-tax, etc.
55. Exemption from income-tax, etc.- Notwithstanding anything contained in the Income-tax Act, 1961 (43 of 1961), or the Companies (Profits) Surtax Act, 1964...
56. Penalties.- 1. Whoever in any return, balance-sheet, or other document or in any information required or furnished by or under or for the purposes of...
Offences by companies
57. Offences by companies.- 1. Where an offence has been committed by a company, every person who, at the time the offence was committed, was in charge ...
Bankers' Books Evidence Act, 1891, to apply in relation to National Bank
58. Bankers' Books Evidence Act, 1891, to apply in relation to National Bank.- The Bankers' Books Evidence Act, 1891 (18 of 1891), shall apply in relation to ...
Liquidation of National Bank
59. Liquidation of National Bank.-No provision of law relating to the winding up of companies shall apply to the National Bank and the National Bank shall no...
Power of Board to make regulations
60. Power of Board to make regulations.-1. The Board may, with the previous approval of the Central Government and in consultation with the Reserve Bank...
Amended of certain enactments
61. Amended of certain enactments- The enactments specified in the Second Schedule to this Act shall be amended in the manner provided therein and unless oth...
Power to remove difficulty
If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, not inconsistent with the provisions of this A...
I do hereby declare that I will faithfully, truly and to the best of my skill and ability execute and perform the duties required of me as director, auditor, ...